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c) Somordor Ltd is a producer of Fertilizers. In a year the manufacturer produces 1,000 bags of the Fertilizers but it is able to sell
c) Somordor Ltd is a producer of Fertilizers. In a year the manufacturer produces 1,000 bags of the Fertilizers but it is able to sell 2/3 of the total production at GH450 per product. The fixed cost of the entity per month is made of the following expenses: Wages & Salaries GH 50 Advertisement GH 20 Processing Cost GHe 80 The cost incurred in producing ten (10) units of Fertilizers is also as follows: Labour GH 23 Production Overhead GH 30 DAS Rubber GH 43 Required: Calculate in a year i. The break-even units (3 marks) ii. iv. The margin of safety in cash as they sell 2/3 of the products sold The number of tyres to be sold to make a loss of GH 3,450 Interpret your answer in ii above (4 marks) (3 marks) (4 marks)
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